Supplier News
South Africa – GPI deal with Atlas to ease Australian slots into Africa
By Phil - 20 August 2015
JSE-listed investment and empowerment group, Grand Parade Investments (GPI), has acquired a 4.95 per cent stake in Australian gaming company, Atlas Gaming Holdings for R5.6m.
Atlas Gaming develops gambling machines for the Australian domestic market and the proposed transaction is aimed at opening the African market via GPI, a significant player in the South African gaming industry.
GPI will use its cash reserves to acquire the initial stake of Atlas and the shares will be a fresh issue of shares with the proceeds being used for expansion. Synot, a Czech-based Gaming company will subscribe for a similar shareholding.
Subsequent to the initial subscription of 4.95 per cent in Atlas, GPI and Synot will each subscribe for a further 5.05 per cent of the share capital of Atlas, in 12 months’ time.
“As an investment holding company, GPI’s focus is to invest in companies that will deliver good returns for our shareholders. For us the deal makes sense as two additional revenue streams will be created. The first being the ability to sell new gaming machines into the South African and African markets and the second is that GPI will obtain the contract to manufacture all the gambling machines for the African market in our country,” said GPI CEO, Alan Keet.
As shareholders in Atlas, GPI will attain the rights to manufacture and sell any gambling machines developed by Atlas Gaming in South Africa. The manufacturing contract will be awarded to Grand Tellumat Manufacturing (Pty) LTD, a leading local electronics manufacturer in which GPI owns a 51% share.
Tim Brcan of Atlas Gaming added: “Our focus is to be one of the world’s leading producers and providers of gaming products. This deal will support our global growth strategy and unlock the African and European markets for Atlas.”
